Nike performs well in China as its Q4 sales
fall by 38%
China has been saving grace for Nike despite its fourth
quarter being a disappointment!
Sales in China last year jumped by 11 per cent for Nike Ė
yet again bringing a double digit sales growth for the
American sports retailer in China. Thatís impressive!
What makes it more impressive is that all this has happened
despite the pandemic havoc and extended lockdowns being a
part of fourth quarter.
There were definitely some initial hiccups but now almost
every Nike store has reopened in China and sales are picking
The fashion label said, while speaking to media, that retail
traffic continues to improve week-over-week with higher
conversion rates compared to what it was last year.
Notably, the sales of flagship Nike brand rose by 1 per cent
on a currency-neutral basis in the country in Q4. With
things returning to normalcy, Nike has been having good
times with China market.
However, on a global level, itís been a different story for
the retailer! With 90 per cent of its stores closed in US,
Europe and most of the Asia-Pacific during the quarter,
sales fell by 38 per cent to clock US $ 6.3 billion.
There were shipping and returns expenses as well, which
affected brandís profits. The margins in Q4 fell to 37.3 per
cent from 45.5 per cent last year.
Even in China, sales in Q4 fell by 3 per cent, but taking
the whole year into consideration, China has been good for
Nike and now with stores reopening and doing well, one can
expect the market to do wonders for the label in the days to
Known for its athletic footwear and apparels, Nike generates
revenue of US $ 36.39 billion.